Industrials Monthly January 2015

5.8%

(0.7%)

2.9%

4.7%

2.7%

(2%)

0%

2%

4%

6%

8%

IndustrialEquip. &

Tech.

EnergyEquip. &Services

SpecialtyMaterials

Paper &Packaging

BuildingProducts

1-Ye

ar R

even

ue

Gro

wth

2.7%

(25.8%)

-9.5%

13.7%

0.0%

(30%)

(20%)

(10%)

0%

10%

20%

30%

IndustrialEquip. &

Tech.

EnergyEquip. &Services

SpecialtyMaterials

Paper &Packaging

BuildingProducts

1-Ye

ar S

tock

Ret

urn

S&P 500 Return

Industrial Headline Transactions

Leverage Multiples Gross & EBITDA Margins

1-Year Revenue Growth1-Year Stock Returns

1.9x 1.7x

2.8x 3.0x 3.0x

0.0x0.5x1.0x1.5x2.0x2.5x3.0x3.5x

IndustrialEquip. &

Tech.

EnergyEquip. &Services

SpecialtyMaterials

Paper &Packaging

BuildingProducts

LTM

Deb

t / E

BITD

A

Tech. Services

23.5% 27.4%

17.9% 20.9%

30.3%

13.0% 17.5%

11.6% 14.2% 12.5%

0%5%10%15%20%25%30%35%

0%5%

10%15%20%25%30%35%

IndustrialEquip. &

Tech.

EnergyEquip. &Services

SpecialtyMaterials

Paper &Packaging

BuildingProducts

LTM EBITD

A M

arginLTM

Gro

ss M

argi

n

Target Acquiror Acquisition Synopsis

Industrial Equipment

& Technology

•

•

Watts Water Technologies, Inc. (NYSE: WTS), a manufacturer of flow control products, acquired AERCO International from The Riverside Company for $265 millionAERCO International, Inc. develops and manufactures a wide range of high-efficiency commercial boilers and water heaters

Energy Equipment & Services Turbine and Compressor

Business

•

•

Siemens Aktiengesellschaft (DB:SIE), a German electrical engineering company, acquired Rolls-Royce’s energy aero-derivative gas turbine and compressor business for $1.3 billionThe target, based in the UK, manufactures aero-derivative gas turbines and compressor systems to customers in oil and gas and power generation sectors

Specialty Materials

•

•

Eastman Chemical Co. (NYSE:EMN), a manufacturer of chemicals, plastics and fibers, acquired Taminco Corporation for $2.8 billionTaminco Corporation produces and distributes alkylamines and alkylamine derivatives in the United States, Belgium and internationally

Paper & Packaging

•

•

Powerflute Oyj (AIM:POWR), a Finnish manufacturer of semi-chemical fluting paper, acquired Corenso United Oy Ltd. for $114 millionCorenso United Oy Ltd., based in Finland, manufactures cores and tubes, coreboards and edge protectors for customers worldwide

Building Products

•

•

Builders FirstSource, Inc. (NasdaqGS:BLDR), a manufacturer and supplier of structural and related building products, acquired Empire Truss Ltd.Empire Truss Ltd. manufactures custom designed roof and floor trusses and distributes engineered wood products

Note: EBITDA Margins in red

TM Capital’s Industrial Contacts

Selected Industrial Equip. & Tech. Transactions Selected Energy Equip. & Services Transactions

Selected Specialty Materials Transactions Selected Paper & Packaging Transactions

Selected Building Products TransactionsTarget Acquiror Transaction Description

Lumber Specialties Ltd.

US LBM Holdings, LLC

US LBM, a distributor of building materials, acquired LumberSpecialties, a manufacturer and distributor of structuralbuilding components

Steel Storage Europe Ltd.

Janus International Group LLC

Janus, a manufacturer of steel roll up sheet doors andstorage facility components, acquired Steel Storage, a UKbased manufacturer and installer of self storage systems

Homestyle Products Ltd.

Acrysil Ltd. (BSE:524091)

Acrysil, an Indian manufacturer of kitchen sinks andappliances, acquired Homestyle Products, a UK basedmanufacturer of kitchen sinks, taps and accessories

Target Acquiror Transaction Description

Solvay SA (ENXTBR:SOLB), Eco Services Div.

CCMP Capital Advisors, LLC

CCMP, a private equity firm, acquired Solvay's Eco ServicesBusiness, a developer of technologies that sustainablyregenerate sulfuric acid, for $890 million

Farrow & Ball Ltd. Ares Private Equity Group

Ares Private Equity, a private equity firm, acquired Farrow &Ball, a manufacturer and marketer of paints and wallpapers,for $433 million

Ferro Corp. (NYSE: FOE), Polymer Additives Div.

H.I.G. Capital, LLC H.I.G. Capital, a private equity firm, acquired Ferro's PoymerDivision, a manufacturer of specialty chemicals, for $154million

Target Acquiror Transaction Description

Swisslog Holding AG (SWX:SLOG)

KUKA Aktiengesellschaft (DB:KU2)

KUKA, a German developer of industrial automation processsolutions, acquired Swisslog Holding, a Switzerland basedprovider of automation solutions, for $390 million

Q Holding Co. 3i Group plc (LSE:III)

3i Group, a UK based private equity firm, acquired Q Holding,a manufacturer of rubber components, for $160 million

Wolf-tec, Inc. John Bean Technologies Corporation (NYSE:JBT)

John Bean, a provider of solutions to food processing and airtransportation industries, acquired Wolf-tec, a manufacturerof meat, poultry and seafood processors, for $54.0 million

Target Acquiror Transaction Description

Cimarron Energy, Inc.

Turnbridge Capital, LLC

Turnbridge Capital, a private equity firm, acquired CimarronEnergy, a designer and manufacturer of oil and gasproduction equipment, for $100 million

Thunder & Lightning Welding Ltd.

Hyduke Energy Services Inc. (TSX:HYD)

Hyduke Energy, a Canadian integrated oilfield servicescompany, acquired Thunder & Lightning Welding, a Canadiandesigner and fabricator of oilfield equipment

Flogistix, LP White Deer Energy White Deer, a private equity firm, acquired Flogistix, an oiland gas optimization company, which manufactures a line ofwellhead compressors

Target Acquiror Transaction Description

Gault et Fremont, S.A.S.

UI Gestion SA UI Gestion, a French private equity firm, acquired Gault etFremont, a French manufacturer of cardboard and paperpackaging products, for $20.0 million

K-Sun Corporation Seiko Epson Corp. (TSE:6724)

Seiko Epson, a Japanese manufacturer of computer printersand information and imaging related equipment, acquired K-Sun, a provider of identification solutions

Pedersen Group Ltd.

Maui Capital Ltd. Maui Capital, a New Zealand based private equity firm,acquired Pedersen Group, a New Zealand based provider ofservices to pulp mills and the forestry industry

EBITDA Multiples Over Time

9.3x

7.2x

9.3x

9.1x

10.8x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14

TEV

/ EBI

TDA Industrial Equip. & Tech.

Building Products

Energy Equip. & Services

Specialty Materials

Paper & Packaging

W. Gregory RobertsonChairman

212-809-1410

Selected TM Capital Industrial Experience

Paul R. SmolevitzManaging Director

212-809-1416

Michael S. GoldmanManaging Director

212-809-1419

Jerome S. RomanoManaging Director

617-259-2206

www.tmcapital.com

New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360

Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200

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